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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: NMGA; ULTI; UPS
Tuesday night play results:
HLEX: Sold back in the handle.
LLL: Still working on the handle.
MHP: Starting back down.
UPS: Tanking further.
New Plays:
Upside:
Play Date: 03/16/2005
BJ (BJ Wholesale Club--$32.30; 0.00; optionable): Wholesale retailer
http://biz.yahoo.com/p/b/bj.html
STATUS: Breakout test. BJ exploded higher to start the month, breaking out from its 14 week cup with handle base. After rallying over 34 on the breakout move it has eased back to test the breakout, holding above the 18 day EMA (31.80) on the test. Volume has been lower, holding below average on the pullback. Strong money flow and relative strength holding up well on the pullback. BJ has been minding its own business as it has made the pullback on low volume. Ready to make the break higher. Just want to see the volume jump as it makes the move.
Volume: 805.1K Avg Volume: 813.363K
BUY POINT: $32.75 Volume=1.1M Target=$37.88 Stop=$31.72
POSITION: BJ FF - July $30c (81 delta) &/or Stock
http://www.investmenthouse.com/ci/bj.html
Play Date: 03/16/2005
CHTT (Chattem--$37.35; +0.87; optionable): Drugs
http://biz.yahoo.com/p/c/chtt.html
STATUS: 50 day EMA test. Volume was up sharply Wednesday, the best volume in a month, as VLO jumped off the 50 day EMA (36.04). It is resuming the breakout move after a 4 week test of the surge out of a 9 week cup with handle pattern to start February. Solid 6 to 2 accumulation in the pattern (6 up price weeks on rising volume to 2 down price weeks on rising volume) shows plenty of buying, setting up the breakout and run higher. Strong money flow and relative strength is ready to breakout again, a very good corroboration of the move. Ready to step in on some more solid volume as it moves through the buy point.
Volume: 226.341K Avg Volume: 158.409K
BUY POINT: $37.55 Volume=238K Target=$42.25 Stop=$36.32
POSITION: HQT FG - June $35c (80 delta) &/or Stock
http://www.investmenthouse.com/ci/chtt.html
Play Date: 03/16/2005
JOYG (Joy Global--$36.11; -0.04; optionable): Farm and construction machinery
http://biz.yahoo.com/p/j/joyg.html
After Hours: $36.11
STATUS: Breakout test. JOYG split in January, right in the middle of its 8 week cup with handle base that formed over the 50 day EMA (32.09), an important institutional support level. Strong 3 to 0 accumulation in the pattern (3 up price weeks on rising volume to 0 down price weeks on rising volume) shows all buyers as it based, setting up the breakout and rally. It exploded higher to end February, and has come back the past two weeks to test the breakout, holding above the 18 day EMA (35.45) on very low, below average volume. That shows few sellers on the test. Money flow is excellent and relative strength broke out on the move. Looking for volume to rebound as it bounces higher from this test. That is when we step in.
Volume: 622.419K Avg Volume: 860.045K
BUY POINT: $36.55 Volume=950K Target=$42.45 Stop=$35.27
POSITION: JQY GG - July $35c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/joyg.html
Play Date: 03/16/2005
USU (Usec--$15.79; -0.14; optionable): Industrial metals and minerals.
http://biz.yahoo.com/p/u/usu.html
STATUS: Ascending Triangle. Nice breakout in early February from a 17 week double bottom with handle base that rallied up to 16 on that move. It needed a breather after that run, and the past three weeks it has moved laterally below 16, making higher and higher lows up the 18 day EMA (15.08). A good positive consolidation as the rest of the market sold off. That means it is likely to continue its move with a strong breakout once this pullback is over. These patterns build pressure from below for the breakout, and when they go the move can be explosive. Volume edged higher Wednesday, but we are looking for a strong above average surge when it moves through the buy point. Solid money flow and relative strength already making the breakout, a positive that often means the breakout is right behind.
Volume: 721.7K Avg Volume: 969.363K
BUY POINT: $16.12 Volume=1.2M Target=$19 Stop=$15.45
POSITION: USU GC - July $15c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/usu.html
Good Investing!
Jon L. Johnson and your IH Alerts Team
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
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stock split
stock recommendation
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